{"id":1106,"date":"2011-08-02T12:25:41","date_gmt":"2011-08-02T02:25:41","guid":{"rendered":"http:\/\/blog.privatefleet.com.au\/?p=1106"},"modified":"2020-06-20T01:54:04","modified_gmt":"2020-06-19T15:54:04","slug":"stuff-you-might-not-know-about-with-loans","status":"publish","type":"post","link":"https:\/\/www.privatefleet.com.au\/blog\/home\/stuff-you-might-not-know-about-with-loans\/","title":{"rendered":"Stuff You Might Not Know About With Loans."},"content":{"rendered":"

When you\u2019ve just about got enough money together but not quite or you need the whole lot to buy that new car, what are the options?\u00a0 Maybe you shouldn\u2019t get the loan.\u00a0 There are some big items that we may need to take a loan out for.\u00a0 I\u2019m thinking of a house, particularly.\u00a0 A new car is also one of those big items that do swallow a lot of cash.\u00a0 Being wary of over spending for that new car \u2013 or anything for that matter \u2013 is a good check for whether you might be able to hold off and save up the cash first before being to hasty in signing the dotted line for a loan.<\/p>\n

Yes, you might want the car but if you saved up before you bought the car, then quite a large sum of money can be saved in interest payments that you would need to pay in a loan \u2013 making the new car cheaper to buy in the long run.\u00a0 It\u2019s amazing how quickly interest can build up on a car loan.<\/p>\n

If you are running on a tight budget, it is probably wise to hold off getting a loan because failure to meet the payments on a loan for a car definitely affects your credit rating in the future.\u00a0 A month or two of lower income or higher demands on your usable income (for example: a larger food bill, your rent goes up, car repairs\u2026) means that it is a lot harder for people on a tighter budget to meet the demands of a car loan\u2019s repayments. If you are already paying for rent or a mortgage, and your margins are tight, do think very carefully before applying for a car loan.<\/p>\n

So, what happens when it all goes pear-shaped?\u00a0 Missing one of the loan repayments usually results in a late fee. \u00a0Loan agents would usually give you a call and remind you that you were not able to provide the payment on such-and-such a date. \u00a0In most cases, lenders would try to work with you and determine a new date when you would pay for the missed payment.<\/p>\n

Digging yourself a deeper hole to get out of is when a payment has been delayed for 30 or more days.\u00a0 In the event where you were not able to pay the loan premiums for almost a month, lenders would be looking at this as a serious lapse and would most likely report this to credit reporting agencies.<\/p>\n

As outstanding loan repayments continue to build up for 90 days or more, repossession of the vehicle is the final outcome. Money lenders would send an agent that would handle the repossession process. \u00a0A lot of the time, police officers are involved to ensure that the re-possession process goes without a hitch.<\/p>\n

Finally, lenders will usually resort to legal action when you are not able to meet the payment terms provided by the lender. After your car is sold on, the lender would sue you for not paying the amount you owe from the lending company. \u00a0It gets really scary here because if you lose in court, you are required to pay the amount you owe, the penalties involved, and the expenses spent by the lender in seeking legal action.\u00a0 Ouch!<\/p>\n

There are such things as manageable loans.\u00a0 Sometimes they really are necessary (like when your car has died and you need a new one). As long as the loan repayments sit well inside your means to pay them, you\u2019ll probably be fine.<\/p>\n

If you are finding it difficult repaying any car loan or multiple loans, here are a few tips to help:<\/p>\n